Daily Quiz: UPSC Prelims Marathon – October 31

• First rough estimate of NI was done by DadabhaiNaoroji for 1867-68; published in his book Poverty and Unbritish rule in India (famous for its Drain of Wealth theory)
• First scientific estimate made by Prof V K R V Rao (1931-32)
• GoI estimated the NI for the first time in 1948-49 through the Ministry of Commerce
• National Income Committee was set up in 1949 (Chairman – Dr P C Mahalanobis)
• P C Mahalanobis was also the chairman of Indian Statistical Institute

Currently, Central Statistical Organization (est 1950) estimates NI (since 1956)

• It publishes National Accounts Statistics annually
• Under the Ministry of Statistics and Programme Implementation
• Now, CSO has been merged with National Sample Survey Organization to form National Statistical Organization

Floating Rate Bonds are securities which do not have a fixed coupon rate. The coupon is re-set at pre-announced intervals (say, every six months or one year) by adding a spread over a base rate. These are issued by RBI.

A High Level advisory Committee (HLAC)was set up by the RBI on October 2013 Under the Chairmanship of Dr. BimalJalan to screen the applications for grant of Bank License under the RBI guidelines.

The Committee had granted in principal approval to IDFC Limited and BandhanFinacial Services Limited to set up banks.

Types of ATMs-

• White label ATMs- White Label ATMs are those ATMs which set up, owned and operated by non-bank entitiesincorporated under Companies Act 1956.
• Brown label ATMs- Brown label ATMs are owned and maintained by service provider whereas bank whose brand is used on ATM takes care of cash management and network connectivity.
• Green label ATMs- These ATMs are provided specifically for Agricultural transactions.
• Orange Label ATMs- ATMsprovided for Share Transactions.
• Yellow Label ATMs- o ATMs provided for E-commerce  Pink label ATM- o ATM provided for women banking.

The Reserve Bank of India (RBI) has constituted high-level task force on public credit registry (PCR) for India. It will be chaired by Y M Deosthalee, former CMD of L&T Finance Holdings Ltd and will have nine other members.

Currently, there are four credit bureaus in India — Credit Information Bureau (India) Limited (CIBIL), Experian, Equifax and CRIF Highmark. These bureaus are regulated by the RBI under the Credit Information Companies (Regulation) Act, 2005. They provide credit scores and allied reports and services. As of now, their analysis reports are used for issuing credit cards and for taking decisions mainly on retail loans.

EXIM Bank         

• Export-Import Bank of India – Established in 1982
• Controlled by Government of India (100%)

NABARD             

• National Bank for Agriculture and Rural Development – Established in 1982
• Controlled by → GoI (99.3%) + RBI (0.7%)

NHB      

• National Housing Bank – Established in 1988
• Apex institution for housing finance in India
• Controlled by RBI (100%)

SIDBI    

• Small industries development bank of India – Established in 1990
• Controlled by SBI, LIC, IDBI other public sector banks, insurance companies etc.

Credit rating for Sovereign Bonds (Rating of Countries)

• Credit rating companies like CRISIL, S&P, Moody’s etc. also give credit ratings (AA, A, BBB, C, D etc.) to countries based on their eco-political conditions
• India hold a credit rating in medium risk category just above the junk status

Factors affecting credit rating

• Fiscal deficit
• Inflation
• Infrastructure
• Foreign investment
• GDP growth